The Transport Minister has warned that Ryanair could block any proposed solution to the Aer Lingus pensions dispute.

Leo Varadkar says Ryanair could use its stake in Aer Lingus to vote against plans to increase its funding for the staff pension fund.

A panel of experts says Aer Lingus should put €37 million extra into the fund to plug a deficit.

It says that Aer Lingus should give some €146.7 million towards the fund, while the Dublin Airport Authority (DAA) should hand over €57.3 million.

The report also recommends that benefits for workers at Aer Lingus and the DAA are reduced.

But Minister Varadkar says that will need a shareholder vote - and Ryanair could use its 30% stake in Aer Lingus to block it.